EXHIBIT 1-A
DRAFT MINUTES Regular Meeting Board of Directors Monterey Peninsula Water Management District March 19, 2007
The meeting was called to order at 7 PM in the MPWMD Conference room. Board members present: David Pendergrass, Chair – Mayoral Representative Alvin Edwards, Vice Chair – Division 1 Judi Lehman – Division 2 Kristi Markey – Division 3 Michelle Knight – Division 4 Larry Foy – Division 5 (participated by telephone) David Potter – Monterey County Board of Supervisors General Manager present: David A. Berger District Counsel present: David Laredo The assembly recited the Pledge of Allegiance. No comments were directed to the Board. Director Knight made a motion that was seconded by Director Edwards, to adopt the Consent Calendar except for items 2 and 4 that were pulled for separate consideration. The motion was unanimously approved on a vote of 7 – 0. Approved. Director Edwards made a motion that was seconded by Director Knight, to approve a not-to-exceed amount of $4,300 for facilitation services by Snider & Associates. The motion was adopted on a vote of 5 – 2. Directors Edwards, Foy, Knight, Pendergrass and Potter voted in favor of the motion. Directors Lehman and Markey were opposed. Approved. Director Edwards proposed a motion to approve the PowerPoint presentation with the understanding that additional slides could be added in the future. The motion was seconded by Director Lehman and approved unanimously on a vote of 7 – 0. Approved. Approved. Approved. Approved. General Manager Berger reviewed progress made on completion of Strategic Plan goals since the February 19, 2007 Board meeting. An outline of his presentation is available for review at the District office or on the District’s website. Project Manager, Henrietta Stern, presented the item. An outline of her presentation is available for review at the District office or on the District’s website. Water Resources Engineer, Larry Hampson, presented an overview of the Draft Study Plan that was developed cooperatively by a technical advisory committee comprised of nine local, state and federal agencies. An outline of his presentation is available for review at the District office or on the District’s website. Water Resources Division Manager, Darby Fuerst, presented the report. An outline of his presentation is available for review at the District office or on the District’s website. Mr. Fuerst reported that between October 1, 2007 and March 14, 2007, California American Water (CAW) produced 4,213 acre-feet of water from the Carmel River, which is 141 acre-feet under the limit established as a result of State Water Resources Control Board Order 95-10. CAW production from the Coastal and Laguna Seca Subareas of the Seaside Basin during the same time period was 1,269 acre-feet. The CAW annual production limit for the Coastal and Laguna Seca Subareas as established by the Seaside Basin adjudication decision is 3,849 acre-feet. Mr. Fuerst also advised the Board that there may not be a need to move to mandatory rationing in 2007, but low river flow could signal critically-dry conditions. He reminded the Board and public that the Monterey Peninsula is currently subject to Stage 1 conservation regulations that prohibit water waste. District staff is working with CAW to coordinate efforts for disseminating the water conservation message to the public. District Counsel David Laredo reported that the Board met to discuss the six items listed on the closed session agenda. A status report was given, and the Board provided general direction to District Counsel and staff. No action was taken on any agenda item. Michelle Knight, MPWMD representative to the Watermaster, reported that an annual status report was issued to Judge Randall on March 31, 2007 as required by the adjudication settlement. In addition, the Watermaster Executive Director will prepare a monthly newsletter that will be distributed by email to all interested persons. Also Martin Feeney has begun work on environmental scoping documents for construction of monitoring wells. Director Potter announced that he was looking forward to serving with Director Knight on the Watermaster. Chair Pendergrass announced that the next meeting of the Department of Ratepayer Advocates’ water supply planning effort will be conducted on March 28^th. He also reported that he met with Senators Diane Feinstein and Barbara Boxer about obtaining federal funds for planning efforts related to the Monterey Regional Water Pollution Control Agency groundwater replenishment project. General Manager Berger announced that the District will be an active participant in the Water Awareness Committee’s 2^nd Annual Waterwise Symposium scheduled for March 23, 2007. Director Markey proposed a motion to deny the appeal and adopt the Findings of Denial as presented in the staff report. The motion was seconded by Director Lehman and adopted unanimously on a vote of 7 – 0. The following comments were directed to the Board during the public comment period. (1) Eric Miller, architect for the applicant, stated that he had been working on the project since 2002, and it wasn’t until the design was complete in 2007, that he was made aware of the deed restriction that limited the opportunity to retrofit. According to Mr. Miller the project as planned would not increase water use on the site. (2) Derinda Messenger, attorney for the applicant, asked the Board to approve the appeal due to the unique circumstances that had been identified. (3) Robert Greenwood, representing the Carmel Valley Association, urged the Board to deny the variance. (4) Bill Frederickson, owner of property near 905 Ocean View Blvd, urged the Board to consider when making its determination on the variance that, “the larger issue is fairness to the people of Pacific Grove.” During the public hearing, Directors Knight and Pendergrass said they had spoken with the applicant’s representative and legal counsel regarding the variance request. Director Potter stated that he met with Eric Miller, the applicant’s representative. Director Potter also exchanged phone calls with the attorney’s office but has not spoken directly with the applicant’s attorney. Director Foy stated that he received voice mails from the parties involved, but had no direct conversations with the callers. On a motion by Director Edwards and second by Director Potter, the Board directed staff to proceed with production and distribution of the Final 2006 MPWMD Annual Report. The motion was adopted unanimously on a vote of 7 – 0. No comments were directed to the Board during the public hearing on this item. On a motion by Director Lehman and second by Director Markey, the June 2007 Quarterly Water Supply Strategy and Budget was adopted on a unanimous vote of 7 – 0. No comments were directed to the Board during the public hearing on this item. Chair Pendergrass stated that the consensus of the Board is to move forward with development of the MOU and to forward the following comments to the regional leadership group. (1) Page 2 of the MOU, in the first Whereas, delete the word “quickly” and replace it with the word “expeditiously.” (2) Page 2 of the MOU, paragraph 8 (the fourth paragraph that begins with the words “Be It Further Resolved”) add a sentence which specifies that “ample public input will be taken” on whatever proposal is developed through the Department of Ratepayer Advocates regional water supply reliability dialogues. (3) The MOU should require a “monetary contribution” from participating entities. That contribution could be a specified or unspecified amount. It might also be based on a tiered system. (4) The final decision on what entity would develop the water supply solution will be determined in the future; therefore, although the MOU refers to a joint powers agency (JPA), signatories to the MOU would not be making a commitment to support formation of a JPA. Robert Greenwood, representing the Carmel Valley Association, spoke during the public comment period on this item. He pointed out the importance of clarifying which entity has the authority to make the final decision on the regional water supply solution. Director Potter excused himself from the meeting at 9:25 PM. On a motion by Director Knight and second by Director Markey, the list of spending priorities was approved unanimously on a vote of 6 – 0. Directors Edwards, Foy, Knight, Lehman, Markey and Pendergrass voted in favor of the motion. Director Potter was not present for the vote. No comments were directed to the Board during the public comment period on this item. There was no Board discussion of the Informational Items/Staff Reports. The meeting was adjourned at 9:35 PM.	CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE ORAL COMMUNICATIONS CONSENT CALENDAR 1. Consider Adoption of Minutes of the February 22, 2007 Regular Board Meeting 2. Authorize Expenditure of Budgeted Funds to Contract for Strategic Planning Facilitation Services by Snider & Associates 3. Authorize Expenditure of Budgeted Funds to Contract for Fisheries Aide Position(s) 4. Consider Recommendation to Approve PowerPoint Presentation Regarding MPWMD Strategic Water Issues Affecting the Jurisdictions 5. Ratify Appointment to Community Advisory Committee 6. Receive and File District-Wide Annual Water Distribution System Production Summary Report for Water Year 2006 7. Receive and File District-Wide Annual Water Production Summary Report for Water Year 2006 8. Consider Adoption of Treasurer’s Report for January 2007 PRESENTATIONS 9. Strategic Plan Update 10. Water Supply Project Alternatives Update 11. Draft Study Plan for Long-Term Adaptive Management of the Carmel River Beach and Lagoon GENERAL MANAGER’S REPORT 12. Status Report on California American Water Compliance with State Water Resources Control Board Order 95-10 and Seaside Groundwater Basin Adjudication Decision ATTORNEY’S REPORT 13. Report on 5:30 PM Closed Session of the Board Conference with Legal Counsel – Existing Litigation (Gov. Code 54956.9 (a)) A. Application of California American Water Company to the Public Utilities Commission Application No. 04-09-019 – Coastal Water Project B. State Water Resources Control Board Permit No. 7130B C. State Water Resources Control Board Permit No. 20808 D. MPWMD v. Nick Marotta, Jr., Gerda Marotta, and Does 1-100 – Monterey County Superior Court Case NO. M83498 E. MPWMD v. Roy Woods, Woods 1995 Trust, and Does 1-100 – Monterey County Superior Court Case No. M83499 F. General Rate Case (“GRC”) – Plan Revisions for Class A Water Utilities before the California Public Utilities Commission (Application NO. 07-02-023) DIRECTORS’ REPORTS (INCLUDING AB 1234 REPORTS ON TRIPS, CONFERENCE ATTENDANCE AND MEETINGS) 14. Oral Reports on Activities of County, Cities, Other Agencies/Committees/ Associations PUBLIC HEARINGS 15. Consider Appeal of District General Manager’s Decision to Deny a Water Permit for a Third Bathroom Addition to 905 Ocean View Blvd., Pacific Grove (AZPN 006-031-004) – Continued from the February 22, 2007 Board Meeting 16. Consider Approval of Draft 2006 MPWMD Annual Report 17. Consider Adoption of April through June 2007 Quarterly Water Supply Strategy and Budget ACTION ITEMS 18. Review and Comment on Draft Memorandum of Understanding to Form the Monterey Bay Regional Water Solutions Task Force 19. Consider Approval of Recommended Spending Priorities for Restoration of the Steelhead Resource in the Carmel River Watershed INFORMATIONAL ITEMS/STAFF REPORTS 20. Letters Received 21. Committee Reports 22. Carmel River Fishery Report 23. Water Conservation Program Report 24. Monthly Allocation Report 25. Monthly California American Water Production Report 26. Monthly Water Supply Status Report ADJOURNMENT

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David A. Berger, Secretary to the Board

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